The best all-rounder for small and growing businesses is the Capital on Tap Business Rewards Credit Card. It’s simple to use, offers flexible rewards (either Avios or 1% cashback), and integrates with popular accounting software. The £99 fee is modest considering the rewards and features, and the card is accessible to a wide range of businesses.
Business credit cards can be powerful tools for managing cash flow, tracking expenses, and earning rewards. Whether you’re a freelancer, sole trader, or SME owner, the right business card can offer value through cashback, travel perks, or low-cost borrowing. With more providers competing in the space, there are excellent options available for companies of all sizes.
Compare Business Credit Cards
| Business Credit Card | Rewards Type | Annual Fee | Representative APR | Key Features | Perks |
|---|---|---|---|---|---|
| Capital on Tap Business Rewards | Avios or Cashback | £99 | 29.9% | 1 point per £1, choose Avios or 1% cashback | Companion voucher (high spend) |
| American Express Business Gold | Membership Rewards | £0 in Year 1 (£195 after) | Charge card (no APR) | 1 point per £1, 20k bonus points, travel perks | 2-4-1 voucher (more flexible) |
| Barclaycard Select Business Credit Card | None | £0 | 27.1% | No rewards but good for low-cost borrowing | |
| Santander Business Cashback Credit Card | Cashback | £30 | 23.7% | 1% cashback on spend, low annual fee | |
| Metro Bank Business Credit Card | None | £0 | 14.9% | Low APR, simple card with no fees |
What is the best business credit card for points?
The American Express Business Gold Card stands out for businesses that want to earn travel rewards. It offers 1 Membership Rewards point per £1 spent, with the ability to transfer points to multiple airline and hotel partners. The first year is fee-free, and the welcome bonus of 20,000 points can be valuable for companies with regular travel or ad spend.
What is the best low-interest or no-frills business card?
For businesses looking to minimise costs, the Metro Bank Business Credit Card offers one of the lowest interest rates in the market at 14.9% with no annual fee. It’s ideal for companies that don’t need rewards but want a reliable, low-cost card for managing expenses or short-term borrowing.
Who is eligible for a business credit card in the UK?
In the UK, eligibility for a business credit card depends on a few basic requirements. You need to be operating a business, which can include limited companies, partnerships, sole traders, freelancers, or contractors. You don’t necessarily need to be VAT-registered or have a large turnover, but you must be able to show that you are engaged in commercial activity.
Applicants must be at least 18 years old and permanently reside in the UK. Most providers also require you to have a UK-based business bank account. In some cases, especially for sole traders, a personal account that handles business income may be accepted.
Lenders will typically assess both your personal and business credit history. Newer businesses with little or no credit history may still qualify, although they might receive lower credit limits or higher interest rates. You’ll usually need to provide some proof of income or trading activity, such as recent bank statements, invoices, or tax returns.
Only those authorised to act on behalf of the business—such as company directors, owners, or designated managers—can apply for and manage a business credit card. If you meet these conditions, you’re generally eligible to apply for a business credit card in the UK.
Who can legally use a business credit card?
Business credit cards must be used for company-related expenses. The cardholder is typically the business owner, director, or authorised employee. While rewards earned through business spend technically belong to the business, the director or finance team decides how they are used—whether for reinvestment, travel, or staff incentives. Personal use of a company credit card without permission may breach company policy or even be considered misuse.
Pros of Business Credit Cards
- Helps manage cash flow
- Offers rewards and discounts
- Simplifies expense tracking
Cons of Business Credit Cards
- High interest if unpaid
- Risk of overspending
- Approval not always guaranteed
Is getting a business credit card a good idea?
Getting a business credit card can be a good idea, but only if it’s used strategically and responsibly. While just 11% of small and medium-sized enterprises used business credit cards in 2022, usage is rising again post-pandemic as companies turn to more flexible funding tools. Around 50% of small businesses cite cash flow management as a key reason for using credit cards, and 87% value the convenience they offer for everyday expenses. Rewards like cashback and Avios also add value, especially for businesses with consistent monthly spending.
However, these cards are not without risks. Business debt in the UK rose by 61% in 2023, with interest rates on business credit cards averaging around 26%. Delinquency rates increased by 35% in the first half of 2023, indicating that more SMEs are struggling to make payments on time. While 97% of medium-sized companies clear their balances, smaller businesses and sole traders are more likely to carry debt. The result is a financing tool that can either help businesses grow or weigh them down—depending entirely on how it’s used. For most businesses, the key is to treat the card as a short-term tool, not a long-term borrowing solution.
